Economy News

Seoul Metropolitan Government provides emergency support for businesses struggling due to MERS outbreak

06/25/2015SMG1791

The Seoul Metropolitan Government, in cooperation with the Seoul Credit Guarantee Foundation, has decided to put significant effort to providing payment guarantees for small-sized businesses incurring damages from the slowdown in business caused by the MERS outbreak.

To breathe life back into the local economy, the Seoul Metropolitan Government has begun providing emergency management stabilization funds, amounting to a total of KRW 200 billion, through the provision of special payment guarantees for cash liquidity, focusing on small-sized businesses, clinics, and travel agencies. As a result, a total of 4,389 relevant applications, amounting to KRW 127.8 billion, have been submitted since June 10, when the program was first launched.

The Seoul Credit Guarantee Foundation eased the eligibility criteria in order to help businesses receive much-needed financial support sooner, and has opened emergency counters at its branches to serve the businesses receiving payment guarantees. It has also adopted a more flexible human resource management system at its headquarters and branches.

As a result, a total of KRW 11.2 billion in payment guarantees has been provided to 366 businesses since June 22.

In addition to the stabilization funds, the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation are also providing relevant consulting and funding (up to KRW 1 million per business, KRW 450 million in total) to a variety of businesses, including restaurants, bakeries, supermarkets, and laundromats, in an effort to help them endure the difficulties caused by the MERS epidemic.